Property law strengthens Dubai real estate boom
It has been reported today that the property boom in Dubai has received a boost from last month’s legalisation of freehold property ownership for foreigners.
AME Info indicates that available property is currently in short supply in Dubai and so the influx of foreign investors after the change to the property law is likely to send prices soaring.
It is claimed that many buyers were hovering around the Dubai property market in expectation of a change to the rules and that a significant number of these are now looking in earnest.
Furthermore, high rents in Dubai are reportedly forcing people to buy if at all possible, for both residential and investment purposes.
The prediction from AME Info is that property prices may eventually start to stabilise in the middle of 2007, but like most emerging markets, it is very difficult to predict this accurately.
Some experts suggest that property prices could continue to rise for much longer than this and Dubai is certainly proving popular with the rich and famous at the moment.
Rental yields, it is claimed, are now in the region of six to eight per cent. It is thought that this will need to be halved before property is considered expensive in Dubai, indicating that property prices could comfortably rise much higher.
Source: Real Estate TV